Aguinaldo Boquimpani - Marketers - Interactive TV Advertising

Interactive Media and

Interactive TV Advertising

Aguinaldo Boquimpani

Digital TV / Interactive Media Specialist

Brazil

Agenda

1. TV and Internet

2. DTV in Brazil and Latin America

3. Ginga: a World-class DTV standard

4. TV Interactivity

5. Why Interactive TV Advertising

6. What is Interactive TV Advertising

7. Current Offerings

8. Example: Verizon Widget Bazaar

9. Convergence Paths

10.Multiple Screens

11. IBB (Integrated Broadcast-

Broadband) – real world samples

12.Relevant Points

TV is…

• Communication

• Entertainment

• Marketing

Watching TV is…

• A lean-back experience

• A group experience

• Getting content (push)

Internet is…

• Information

• Entertainment

• Marketing

Using Internet is…

• A lean-forward experience

• A solo experience

• Seeking content (pull)

Will Internet replace TV?

• Recent Nielsen’s 3 Screen Reports (USA) say that:

• Internet content viewing is growing significantly

• But.. TV content viewing is NOT decreasing

• Use of both platforms at the same time is increasing

drastically

Are Connected TVs the perfect solution?

• Google TV was branded as the killer “Connected TV”

solution and it was a spectacular failure.

• In the connected TV scenario the broadcaster is out:

TV manufacturers want a piece of the action!

• Viewers may not want to search the Internet or

otherwise have an Internet experience on the TV.

• But… what about smartphones and tablets? They

will be secondary screens in the home.

What would be the solution to integrate

both worlds?

• An inclusive scenario, with manufacturers (devices),

broadcasters (content), sponsors and marketing

(money), all in the same boat.

• A platform that integrates the main TV screen and

the secondary, personal screens (tablets and

smartphones)

• A unified user experience in all different screens

• An easy user interface: usability is fundamental.

• Technologies based on open standards, not

proprietary solutions.

Let’s go back to the beginning

• TV today means… Digital TV

• How is the adoption of Digital TV and what

can be expected?

DTV in the World and in LATAM

0

200

400

600

800

1000

1200

1400

1600

2006 2010 2016

Analog Homes

Digital Homes

Source: Digital TV Research Ltd., June 2011

2010 :

- 42.5% digital

- Only Finland

fully digital

2016:

- 80.0% digital

- 33 countries

fully digital Millions of

Households

The World Is Switching to Digital TV

Emerging Markets Will Drive DTV Sales

Source: IMS Research, August 2011

In the next five years, TV set shipments will: grow 2.2% per year in Latin America, Eastern Europe, MEA & Asia Pacific decline in Japan & Western Europe be flat in North America

0

20

40

60

80

100

120

140

2010 2011 2012 2013 2014 2015 2016

Primary pay DTT

Primary FTA DTT

Analog terrestrial

Digital free DTH

Pay DTH

Pay IPTV subs

Analog cable subs

Digital cable subs

Source: Digital TV Research Ltd., June 2011

Free to Air DTT will grow faster than DTH or digital cable

Millions of Households

Free-To-Air TV Will Lead in Latin America Free To Air will Lead in Latin America

Brazil

In 2016, Brazil Will Be 5th Largest DTV Country Brazil will be #5 DTV country in 2016

(1) Computer Industry Almanac / IBGE (2) Telecom/ IBGE (3) WWW.eletros.gov.br

FTA TV: 96% of Brazilian households(3)

Broadband: 18% of Brazilian Households (2)

PC penetration: 55% of Brazilian households(1)

TV in Brazil

Highlights

Total current number of TVs: 100M+

Coverage: Around 65M households

More than 13M TVs CRT sold on the last 3 years not equipped to receive DTV

Around 7M LCD/PLASMA TVs sold before 2010 not DTV-ready.

3M+ LCD TVs already sold with Interactive System (Ginga).

Quick view: still a long way to go,

but advancing fast

8,00

4,90 4,00

3,00

3,60

4,30

-

0,30

2,00

2008 2009 2010E

iDTV

LCD/PLASMA

CRT

Source: 2008 and 2009 (SUFRAMA) / 2010 (estimate)

(*) in millions of units

DTV in Brazil

(1) http://www.dtv.org.br

Cities: 47, 23 capitals (1) Broadcasters: 100+ broadcasters, including headends and affiliates (1)

State penetration: 23 of 26 states (1)

DTV adoption in Brazil

http://www.tdtv.org.br/









(1) http://www.dtv.org.br (2) http://pt.wikipedia.org/wiki/ISDB-TB

11 countries in LATAM + Philippines in Asia (1)

ISDB-T adoption in LATAM

Population: 354 Million in LATAM (2)

The Ginga Standard for Interactive TV

Ginga, the Brazilian Terrestrial Digital TV System

interactivity standard, is part of ISDB- Tb (ISDB-T

Japanese standard, Brazilian version) that has been

adopted for terrestrial and mobile DTV in 11 countries

representing over 350 million people, including Brazil,

Uruguay, Peru, Argentina, Chile, and Venezuela.

Ginga is a modern, world-class interactivity system that

was recognized by ITU (the United Nations agency for

Telecommunications and TV Standards) as an

international standard.

Today there are more than 3M TV sets in Brazil already

deployed with full Ginga products from brands like

Sony, Panasonic, Philips, LG and Samsung.

Ginga: A World-Class Interactive DTV

Standard

Source: http://www.dtv.org.br

LCD TVs will have to include Ginga to keep tax breaks

Convergência Digital :: 23/09/2011

A change to the Processo Produtivo Básico (PBB) is in public consultation for TV

sets with liquid crystal display (LCD) that will require inclusion in these devices of

the DTV interactive middleware, Ginga.

In other words, manufacturers who wish to continue enjoying the tax benefits for

the production of these devices will have to incorporate Ginga mandatorily. Under

the proposal, until the end of next year 75% of the devices must come with the

middleware.

Starting in 2013, all LCD TVs benefiting from the exemptions will have to include

Ginga. Moreover, it is prescribed that all models that support IP connectivity

middleware must not have the possibility of access restrictions on interactive

applications for the communication channel.

http://convergenciadigital.uol.com.br/cgi/cgilua.exe/sys/start.htm?infoid=27802&sid

=7

Brazilian Government: TV Interactivity and Ginga

are key technologies to the country

http://convergenciadigital.uol.com.br/

Interactive TV Advertising

22

Viewer chooses interaction pressing OK button in the remote

Interactive TV Advertising Model

© Copyright TQTVD / TOTVS

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Modelo Interatividade

Viewer is asked if he wnats to receive a free sample of the product. It could also be a discount code, a code to participate in a lottery, etc.



24

A dialogue is shown to get viewer’s permission to store his data.



25

If the user agrees, his data is sent to the broadcaster and the broadcaster can forward

this data to its marketing sponsor.



26

From this point on the viewer can access more information with a rich interactive

experience inside the marketing campaign.



Interest is Growing in Interactive TV Advertising

Why Interactive TV Advertising

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Who already offers interactive TV marketing in the world?

Source: http://www.broadcastpapers.com/whitepapers/BCA03OpenTVInteractTVRevenues.pdf?CFID=21858164&CFTOKEN=3aa7c6e72bbe30b5-9B26E406-B5EE-1EC3-1BC7B19C0C3F7D4D


http://www.broadcastpapers.com/whitepapers/BCA03OpenTVInteractTVRevenues.pdf?CFID=21858164&CFTOKEN=3aa7c6e72bbe30b5-9B26E406-B5EE-1EC3-1BC7B19C0C3F7D4D









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Who is already sponsoring Interactive TV marketing?

Modelo de Comercialização de Interatividade na TV

Source: http://www.broadcastpapers.com/whitepapers/BCA03OpenTVInteractTVRevenues.pdf?CFID=21858164&CFTOKEN=3aa7c6e72bbe30b5-9B26E406-B5EE-1EC3-1BC7B19C0C3F7D4D











Interactive TV Improves Advertising Value

Makes TV Advertising More Measurable & Accountable Traditional commercial spots are not nearly as valuable in homes with DVRs Q3 2009: In Tivo households, 39% of programs were time-shifted Addresses, Engages & Empowers the Consumer Transforms TV ad messaging into a lean-forward experience with scale, customization, addressability & localization Consumer chooses when and how long to engage De-Clutters the Ad Environment Offers a rich, singular brand experience that cannot be replicated with commercials or online advertising


Source: IAB Platform Status Report, Interactive Television Advertising, Feb 2010

Interactive TV Advertising is Effective

Canoe Ventures Study on Interactivity & Advertising (March-Sept 2010)

Goal: - Measure impact of interactivity on brand metrics - Measure recall, opinion, purchase intent Scenario #1: “Request for Information” (RFI) - An interactive call to action during a TV commercial - A request for a product sample, a coupon, or informational brochure - Viewer simply uses their remote and “clicks” to receive Scenario #2: In-Program Poll - Advertiser-sponsored interactive poll or trivia quiz - Poll displayed during program, then followed by commercial


Results Interactivity improves brand recall - RFI in commercial increased unaided recall of test brand 132% - Unaided brand recall rose 167% for interactive poll following ad Interactivity results in a higher brand opinion - Favorability increased in viewers who noticed interactivity (42% to 51%) - 91% who accepted offer had “a more favorable opinion about the brand” Interactivity increases purchase intent - Interactive Poll + commercial raised brand purchase intent scores 40% - Just noticing interactive ad without clicking raised purchase intent


Interactive TV Advertising is Effective

Entry Points

What Is Interactive TV Advertising “Entry Points are the place

within the TV viewing or

interactive experience where

the viewer is first exposed to

the interactive advertisement.”

Main Menu Banner

Interactive Guide Banner

Interactive Tags in Commercials

(a.k.a. Triggers)

Pause/Delete Screen Banner


Destinations / Capabilities

“Destinations are the follow-on engagements that

the consumer experiences once they have initiated

the interaction.

Technical Capabilities are applications or

functionality that can be interacted with.”

Examples

Branded

Showcases/Microsites

(a.k.a Dedicated Advertiser

Location/Virtual Channel)

Branded Theme

Promotions on Demand

Broadband/VOD

Sponsorships

Click to Call

Customized Applications /

Games / Commerce

Lead Generation Capability

(a.k.a. Request for

Information (RFI))

Survey/Voting/Polling

Telescoping to VOD

What Is Interactive TV Advertising


Verizon: Widgets are Key to Advertising

Use case: Verizon Widget Bazaar

Source: "Verizon focuses on widgets-based advanced advertising", John Moulding, Videonet, 10 Nov 2010

Verizon, the US quad-play provider, is focusing its advanced advertising attentions on its Verizon Widget Bazaar...Tellingly, the TV apps platform is a much bigger priority than advanced VOD advertising like dynamic VOD ad insertion. ...A good example of the advertising opportunity with the Widget Bazaar is provided by Victory Motorcycles, which includes video about its products that amounts to a television brochure, plus a gallery of product photos. This is complemented by an interactive dealer locator that presents the nearest five dealers to a viewer, based on their ZIP Code. Viewers can also request a brochure to be emailed to them. All the apps within the Widget Bazaar will benefit from the fact that Verizon can use its own 30 second advertising spots to promote the concept and make sure consumers know the applications exist. … “I would argue that our widgets provide the most advanced dedicated advertiser landing page available in the US today,” Jason Malamud, General Manager of Verizon FiOS Advertising declares. “Advertisers can pull video from our VOD servers and they can pull text and graphics from web servers so they can be dynamically updated. They can offer interactive features like a dealer locator [for car dealers, for example]. That information is not sent to us separately but is available from the advertiser so data can always be fresh.” Usage data can also be delivered straight back to the advertiser.

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SKY ACTIVE

SKY Active is a model of Interactive TV launched in

the UK and Ireland in 2001.

Business models for interactive marketing:

• Interactive Airtime – it is the transmission time

used to exhibit an ad associated to interactivity, which

is accessed inside the context of the video content.

• Interactive Airtime Premium – It is an additional

fee which enables an interactive spot in the video

content. The price depends on the number of

insertions but only households that support

interactivity pay for the insertions.

• Hosting Charge – Fee to store and transmit the

interactive content.

Source: http://www.t2dgroup.com/downloads/Guide%20to%20Interactive%20TV.pdf

Use case: Sky Active

http://www.t2dgroup.com/downloads/Guide to Interactive TV.pdf

Paths of Convergence

Source:

DisplaySearch

Q2’11 Quarterly

TV Design and

Features Report

Connected TV shipments to exceed 138M in

2015

1. The Internet on TV Sounds Confusing (to the user)

For average consumers, the thought of hooking up the Internet to their television set

sounds confusing. Many wonder what they will have to do to make a smart TV work

2. The Internet on TV Is Confusing

They want to watch their new television without a call to tech support, and that is

understandable. Delivering products that are simple to set up and easy to use should be

a main concern for television manufacturers.

3. Fear of Obsolescence

4. Customer Support Concerns

5. Poorly Defined Value Proposition

Most Smart TVs are being touted for their technology rather than the benefits they

provide.

5 Reasons why Connected TVs can be a flop

Source: http://mashable.com/2011/01/11/smart-tv-flop/

• This is the true question.

• Most of Internet scenarios will not be successful in the

TV screen and for the TV lean-back experience.

• Convergence then can really exist including:

– Different ways and places to consume content

– Interactivity on TV and multiple secondary screens

– Interactive advertising

– Rich content

– Integration between all of the features

above

Where is the convergence?

• There is a growing offer of broadcaster’s applications on

tablets.

• But apart from accessing the same content, what can the user

do?

• There is currently no integration between TV and devices. This

huge potential for the simultaneous and complementary use of

TV and devices is still not explored by broadcasters and the

advertising market.

Caminhos de Integração: Múltiplas Telas

Connected Devices and Multiple Screens

Caminhos de Integração: Múltiplas Telas

With a convergent model that includes interactive services a huge

horizon of possibilities is opened in the Connected TV home:

• Changing content viewing from the TV to the device, with

access to a rich interactive content interspersed with sponsors

information, product marketing etc.

• Direct real-time feedback from the user to the broadcaster and

to its sponsors using the broadband channel when present.

• Same user interface and user experience.

Connected Devices and Multiple Screens

Two worlds that complete each other. It is not a battle for the home

screen anymore:

– Linear content viewing can be transferred from the TV to the

device.

– Non-linear content can be accessed on the device or on the

TV.

– For the majority of the broadcasters this will mean converging

existing solutions. For manufacturers this will mean revenue-

sharing models with broadcasters and their sponsors.

Paths of Convergence: Connected TV + Ginga

IBB (Integrated Broadcast & Broadband)

a Ginga-based solution


Advanced Interactive and OTT Framework

Multi-screen content distribution with an advanced IBB/OTT framework


Sticker Center: a Ginga-based solution

Sticker Center integrates a flexible Application Store model and can work in TVs and in Android platforms.


Integrated Broadcast & Broadband:

real world sample applications


T-banking: access bank accounts on the TV or on multiple

screens, connected with TV bank advertising.

T-Banking


T-Commerce: access to a Walmart product portal.

T-Commerce


Complete rich content product information: QR-code access on a

Walmart portal.

T-Commerce


Access to social benefit agencies and retirement pension plans.

T-Government


Public health-care agencies information and programs.

T-Government

Access to news portal on Brazil’s largest Internet provider (UOL).

Distribuição de conteúdo OTT OTT Content Distribution


Access to a SBT Videos broadcaster’s content portal.

OTT Content Distribution


Access to TV Globo’s broadcaster’s content portal.

OTT Content Distribution


Social TV

Recommendations and content information sharing among viewers.

Social TV


Relevant Points

• Internet and traditional TV are not about to battle for the home

screens.

• They are about to converge and integrate, enabling seamlessly

unified user experience across different screens and enabling

the viewers choice and freedom.

• There is a huge potential to explore Interactive TV scenarios

using standardized and open solutions like the Ginga standard

for Interactive Digital TV.

• Content is king and marketing will always be about selling a

good product within a rich content experience.

• Welcome to the new TV!

Aguinaldo Boquimpani

Consultant

Digital TV Media

Interactive TV

Mobile Media Technology

[email protected]

http://br.linkedin.com/in/aguinaldoboquimpani

Contact Thank you!

mailto:[email protected]

Aguinaldo Boquimpani - Marketers - Interactive TV Advertising

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